How is AMP with drawing out equity?

Discussion in 'Loans & Mortgage Brokers' started by Shawn, 8th Mar, 2017.

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  1. Shawn

    Shawn Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    420
    Location:
    Sydney, NSW, Australia
    Hi all,

    I've got 2 loans with AMP Bank.

    One for a property in Mildura
    Loan Amount : $244K
    Property Value : ~ $300K
    Rental Income : $320 p/w
    LVR : 85% + LMI

    Secondly in Slacks Creek
    Loan Amount : $291K
    Property Value : $360K? (Purchased for $320K in Nov 2015)
    Rental Income : $360 p/w
    LVR : 90% + LMI

    Question 1 : Any chance I can pull out the increased equity to go a third time?

    Question 2 : How is AMP Bank when it comes to this? Any brokers like to put up their hand to give it a crack?

    Cheers,
    Shawn
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    03 9877 3000
    AMP are quite good in their equity release policy. They require a full application, but they're not too critical on what you'll use the money for (unlike some lenders).

    The problem here is your LVRs are already above 80%. Releasing equity these days above 80% is very tricky, especially for investment purposes. You don't appear to have any equity that you can effectively release.
     
  3. euro73

    euro73 Well-Known Member Business Member

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    Location:
    The beautiful Hills District, Sydney Australia
    85% LVR no questions asked at AMP. But the most important first step for you is to get a broker to get the properties revalued with a few lenders to see whether you can get an uplift in the valuations, in order to extract some equity. I'd get vals done by ANZ, AMP, NAB and Macquarie for each of the 2 properties - as they are all free and they all have good equity/cash out policies. Your broker should be able to order those 8 vals in less than 10 minutes. The valuation results are going to determine what you may or may not be able to do.
     
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  4. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    As mentioned above - AMP are pretty good in this regard. Especially for sub 80% deals. Even above this and they can be ok. They allow for upfront vals too - so get some ordered and see what they come back.

    You're sitting at high LVR's at present - so prob best to stick with AMP if pulling equity above 80% LVR so you won't get hit with a new LMI charge.

    Cheers

    Jamie
     
  5. Corey Batt

    Corey Batt Well-Known Member

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    Location:
    Adelaide, SA
    up to 85% is simple, even at 90% if its for future investment property use I haven't had any troubles with them.

    You're geared up currently as is - so you'll likely want to wait it out a bit further until you've got a bit more equity to work with and or combine with a debt recycling strategy if you have a PPOR.
     
    flyhere likes this.